The Impact of Online Shopping on Retail Business

The consumers today are blessed with enormous options, not only among various products and brands but also among the different retail formats be it a shopping mall, hypermarket, specialty stores, departmental stores or online e-shopping. It is not surprising to know that out of all these forms of alternatives, internet shopping is by far the most rapidly growing shopping methods which are quickly gaining significance in the market.

One of the primary reason this drastic change can be seen is because of the amazing offers and deals going on in the products online, for example, the Myntra Coupon. One must not forget to consider the growth of the internet and the impact it has on our society, so it is important to understand the competitive effects of the e-commerce on the industry.

Growth of online shopping in India

Even after a lot of glitches on national, governmental, technological and economic fronts, the Indian e-commerce has emerged itself into a powerful industry. The Indian E-commerce market scale was evaluated around $16 Billion in 2013 and is expected to reach $56 Billion by the fall of 2023.

The rate at which the online shopping market is growing will touch 85% till now and in the next 10 years, it is expected to acquire 6.5% of the total retail market. India has been chosen among the top 10 countries list of the e-commerce by the online buyers. India has crossed $1.08875 trillion of e-commerce sales internationally and recorded 21.9% yearly growth as compared to the year 2011 and 19.3% higher rates on the global scale.

The Indian e-commerce has emerged itself as the biggest B2C industry of Asia. this extremely growing and trending habits of the Indians have made a place for many e-commerce companies who are giving tough competitions to the existing ones. We have FreeKaaMaal that compares and produces a platform for all their users to grab the best discounts and offers you get on the leading sites.

E-commerce impacts on retailers

The retailers are being affected by the growth of the online shopping business. They are forced into investment spending so that they develop new channels to compete with the online markets. The retailers in the European countries are facing a deteriorating external environment, existing high fixed costs, and increased capital expenditure that means retailer margins are likely to decrease. There is a sudden surge in the online shopping and the customers have loved it to a large extent.

What are the retailers doing about this?

The retailers all over the world have been adapting to these changes in a number of ways. The retail responses to the change in a strong manner for survival. Some of the trends they are following are:

• Shoppers and retailers are trading data for more personalized services.

• Retailers use shopper data to construct personalized shopping experiences

• Shoppers are developing a community around a brand, and act as an ‘affiliate’ for the brand improving retail stickiness.

The retailers have got to mark their way up in order to compete against the online players. They are focussing on shopping centers that more or less includes the following factors:

• That one that has higher productivity

• More potential growth

• The ones that have efficient layouts

• The centers that have positive competitive dynamics

• Higher shoppers traffic